Digital Literacy and Its Effect on Mobile Banking Adoption

Digital literacy is important in the successful application of mobile banking apps. Mobile banking is another significant aspect of conducting financial transactions that are convenient due to the increase in the number of digital banking services. Nevertheless, the use of mobile banking mainly relies on the capability of the users to comprehend and utilize digital technology. This paper employs a conceptual and analytical research in assessing how digital literacy influences the adoption of mobile banking by comparing the current system with the system proposed. The current system points to the problems of low digital literacy users who are characterized by the lack of confidence, fear of fraud online, and problems using mobile banking applications. The proposed system highlights why digital literacy, application design that is user-friendly, and awareness of cybersecurity is critical in enhancing the adoption of mobile banking. The paper concludes with the finding that by increasing the level of digital literacy, the confidence of the users can be enhanced considerably, which will contribute to the increased use of digital banking and financial inclusion.